Price Bands

Included within this section are descriptions of the BirbicatorPRO's Price Bands and how they may be applied to varying types of traders.

Price Bands

One of the most critical elements of BirbicatorPRO is integrating a price band that is based on standard deviations much like traditional Bollinger Bands. However, BirbicatorPRO has been custom crafted to weight and expand the bands values in accordance with the BaseLine as well as standard % price differences to provide more accurate reversal points.

If we take a closer look at the details of the band we can see price areas where direct reversals occurred after coming into contact with the band levels.

Default "Normal Range" Band

To a degree, the reliability of the band levels is dependent upon price reacting to the band. If price fails to respect the band, less reliance can be placed on the level as an indicator and actionable trade signal. BirbicatorPRO integrates a measured price deviation band which accounts for "most" trading volatility within markets. This range is defined within the "Bands" style preset and defines the levels that are most likely to be respected as markets trend.

BirbicatorPRO Band Types

Multiple levels of BirbicatorPRO's band are presented and separated between "Short Range" and "Normal Range" and "Extreme Range." To streamline the viewing of these levels, while also provide the ability to scale the bands depending on a traders needs. "Normal" Bands are included within the Default and Bands style preset. "Short Term" bands can be enabled within the options, and "Extreme Levels" are presented at when selected via the options menu via horizontals on the right side of the current candle.

Enabling Extended Price Band Levels

Trading "Band" Indicators

Band indicators are historically used to provide a guide for extremes of the market, giving both support and resistance levels that are dynamically calculated for each candle created within a chart. The benefit of using such systems is providing traders with a focus on the trading range of an asset that will likely manifest within a period of time. Bands can be used in various systems to help plan trades, define risk of those trades, and measure volatility as the bands higher and lower extremes converge or diverge from one another (e.g., "squeezing of the bands").

Below we see an example of taking a short signal from BirbicatorPRO's signal system and planning a trade to target the lower band of the "Normal Range" for a 2.2 R trade, while using the signal candle's high as the stop level.

Planning Targets with Band Levels

BirbicatorPRO provides a band that is anchored to % price deviations, as well as the BaseLine of the BirbicatorPRO. This provides both dynamic support and resistance levels that are stable across higher timeframe charts (e.g., 1-Day), as well as lower timeframe charts (such as sub 15 minute charts). The basis of the band or the "middle" of the band is critical for defining the range associated with the various levels of the band which defined levels of support and resistance. As the Price Band is based on BirbicatorPRO hybrid adaptive moving average, the levels associated with the band inherently provide ideal price level support and resistance, as well as multiple price targets that can be incorporated into a trading system.

Scalping Consideration: BirbicatorPRO's bands are defined by price % deviations and therefore when using the Birbicator on low timeframes (< 30M), the bands provide the longer term context of the volatility in the asset verse being locked to the momentum of the BaseLine on the lower timeframe. This is a feature that provides valuable context for low timeframe trading, giving the user awareness of where price is likely to gravitate toward given higher timeframe price action.

BirbicatorPRO "Normal Range" bands on 3 minute timeframe.

Scalping Consideration #2: For low timeframe viewing, it is advised that users enable the "Short Range" bands to view more relevant price levels that are actionable toward the scope of low time frame charts. Users may find the combination of the "Simple" preset with enabling the "Short Range" bands the more applicable configuration for scalping low timeframe charts.

BirbicatorPRO "Short Range" bands on 3 minute timeframe

Integrating Relative Strength Index (RSI) with Band Trading

In addition to the bands demonstrating significant levels for price to move towards, the default "Normal Range" bands also provide integrated RSI overbought and oversold identification through color shading which provides the trader with key information about when price may reverse. While RSI in itself can provide actionable insight for the trend strength of the asset, combining it with deviations in price can enhance the accuracy associated with using the indicator as a means of forecasting reversals.

NOTE: BirbicatorPRO's Band RSI shading is based on the current charts timeframe.